Developing lean and responsive supply chains : a robust model for alternative risk mitigation strategies in supply chain designs

This paper investigates how organization should design their supply chains (SCs) and use risk mitigation strategies to meet different performance objectives. To do this, we develop two mixed integer nonlinear (MINL) lean and responsive models for a four-tier SC to understand these four strategies: i) holding back-up emergency stocks at the DCs, ii) holding back-up emergency stock for transshipment to all DCs at a strategic DC (for risk pooling in the SC), iii) reserving excess capacity in the facilities, and iv) using other facilities in the SC’s network to back-up the primary facilities. A new method for designing the network is developed which works based on the definition of path to cover all possible disturbances. To solve the two proposed MINL models, a linear regression approximation is suggested to linearize the models; this technique works based on a piecewise linear transformation. The efficiency of the solution technique is tested for two prevalent distribution functions. We then explore how these models operate using empirical data from an automotive SC. This enables us to develop a more comprehensive risk mitigation framework than previous studies and show how it can be used to determine the optimal SC design and risk mitigation strategies given the uncertainties faced by practitioners and the performance objectives they wish to meet

Forward - Green Virtual Enterprises and Their Breeding Environments: Sustainable Manufacturing, Logistics and Consumption

Part 9: Innovation NetworksInternational audienceGreen Virtual Enterprise Breeding Environments and their Forward-Green Virtual Enterprises, represent a promising paradigm to face the sustainable manufacturing, logistics and consumption challenges towards a Circular Economy. This paper explores the ‘build-to-order supply chain management’ paradigm and the customers involvement in sustainable supply chains to support the creation and operation of goal-oriented supply networks capable of responding to the two-sided market demands of the Circular Economy by means of sustainable offers by industry and sustainable demand by society